A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost.For a cost to be relevant,it must occur in the future and differ between the various alternatives the manager is considering.

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A relevant cost must meet both criteria - it must be a future cost and it must differ between the alternatives being considered. If a cost doesn't meet both criteria, it is not relevant to the decision.

A Cost That Will Occur in the Future and Differs